XSML Capital raises $98.7m in 1st close of 4th fund

XSML Capital, renowned for providing critical growth capital to small and medium-sized enterprises (SMEs) in the Central and Eastern regions of Africa, has proudly announced the launch of its fourth fund, coined the African Rivers Fund IV (ARF IV). The firm’s inaugural closure for this fund garnered an impressive total of $98.7 million.

Established in 2008, XSML Capital has a dedicated mission to aid ambitious entrepreneurs in Africa’s frontier markets. Its objective is to aid these businesses in their growth journey, transforming them into sustainable mid-to-large scale enterprises. The firm offers its profound expertise, an extensive network, and tailored financial solutions, designed to cultivate local talent and stimulate long-lasting prosperity in Central and East Africa’s underutilized markets.

ARF IV is the successor to ARF III, which has been entirely invested now. The African Rivers Funds aim to financially nurture small and medium-sized enterprises that show good promise, particularly in Central and East Africa. These businesses often get sidelined by the banking sector and other financial institutions, finding themselves in an overlooked ‘missing middle’ segment.

With the recently secured funds, XSML is now in a position to double its investment volume and consequently, its impact in the years to come. The company also plans to explore new markets for investments, like Zambia.

Interestingly, existing investors from previous funds have reasserted their faith in XSML’s approach by reinvesting and even escalating their commitment, in some cases, doubling their exposure. The endeavours have also attracted a new investor to join the ranks.

XSML Capital’s managing partner, Barthout van Slingelandt, expressed his satisfaction regarding the successful first closure of ARF IV. He shared that raising funds was undoubtedly challenging last year, particularly within Africa, but the overwhelming response and financial bolster achieved surpassed the firm’s previous fund size.

He sees this accomplishment as a testament to the investors’ confidence in the firm’s investment strategy and performance. He further emphasized their shared enthusiasm about the apt opportunities to invest in driven entrepreneurs in some of Africa’s untapped frontier markets.